Loss Compensation Act Passes Standing Committee... Opposition Party Calls It a "Fake Ignoring Reality"

Content Providing Sufficient Support Instead of Retroactive Application

Ryu Ho-jeong of the Justice Party and Choi Seung-jae of the People Power Party hold protest signs in front of the entrance to the National Assembly Industry Committee's full meeting room on the 28th, opposing the ruling party's unilateral passage of the Small Business Protection and Support Act amendment dealing with COVID-19 loss compensation. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Park Cheol-eung] On the 28th, the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises Committee passed an amendment to the Small Business Protection and Support Act, which includes compensation for COVID-19 losses. Instead of retroactive compensation, the bill provides sufficient support, and it will be promulgated after going through the Legislation and Judiciary Committee and the plenary session.

The bill stipulates that when small business owners suffer serious operational losses due to assembly bans and other measures, the Minister of SMEs and Startups shall provide compensation after deliberation by the review committee. Specific details regarding the target, criteria, amount, and timing of compensation will be announced by the Minister of SMEs and Startups following the review committee's deliberation.

The law will take effect three months after promulgation, but compensation under this amendment will apply only to losses incurred after the promulgation date. Additionally, for serious damages caused by administrative orders such as assembly bans to prevent the spread of COVID-19 before the promulgation date, the government will provide sufficient support to recover damages by comprehensively considering the level of measures, scale of damage, and existing support.

The ruling party led the process, while the opposition strongly opposed it. Members of the People Power Party and the Justice Party on the Industry, Trade, and SMEs Committee issued a joint statement criticizing, "The Democratic Party kicked away the Small Business Loss Compensation Act, which was the hope of small business owners, and forcibly passed a 'fake loss compensation law' in a surprise vote at the full committee meeting of the Industry, Trade, and SMEs Committee," adding, "They committed an 'anti-livelihood, anti-parliamentary outrage' that destroyed the order of dialogue and compromise in the National Assembly."

They continued, "They replaced loss compensation with damage support, ignored the desperate reality of small business owners, and only conducted 'formal reviews' through the government's strong opposition and poor attitude. Even in the previous bill subcommittee, after forcibly passing the bill, they shamelessly blamed the opposition."

They emphasized, "The government and ruling party's actions to trip and twist the small business owners and kick them off a cliff will bring about the downfall of the regime. The People Power Party and the Justice Party will definitely restore the lost dreams and hopes of our precious neighbors and the small business owners who are the lifeblood of the economy."

This content was produced with the assistance of AI translation services.